§490:4A-403  Payment by sender to receiving
bank.  (a)  Payment of the sender's obligation under section 490:4A-402 to
pay the receiving bank occurs as follows:



(1)  If the sender is a bank, payment occurs when the
receiving bank receives final settlement of the obligation through a Federal
Reserve Bank or through a funds-transfer system.



(2)  If the sender is a bank and the sender (i)
credited an account of the receiving bank with the sender, or (ii) caused an
account of the receiving bank in another bank to be credited, payment occurs
when the credit is withdrawn or, if not withdrawn, at midnight of the day on
which the credit is withdrawable and the receiving bank learns of that fact.



(3)  If the receiving bank debits an account of the
sender with the receiving bank, payment occurs when the debit is made to the
extent the debit is covered by a withdrawable credit balance in the account.



(b)  If the sender and receiving bank are
members of a funds-transfer system that nets obligations multilaterally among
participants, the receiving bank receives final settlement when settlement is
complete in accordance with the rules of the system.  The obligation of the
sender to pay the amount of a payment order transmitted through the
funds-transfer system may be satisfied, to the extent permitted by the rules of
the system, by setting off and applying against the sender's obligation the
right of the sender to receive payment from the receiving bank of the amount of
any other payment order transmitted to the sender by the receiving bank through
the funds-transfer system.  The aggregate balance of obligations owed by each
sender to each receiving bank in the funds-transfer system may be satisfied, to
the extent permitted by the rules of the system, by setting off and applying
against that balance the aggregate balance of obligations owed to the sender by
other members of the system.  The aggregate balance is determined after the
right of setoff stated in the second sentence of this subsection has been
exercised.



(c)  If two banks transmit payment orders to
each other under an agreement that settlement of the obligations of each bank
to the other under section 490:4A-402 will be made at the end of the day or
other period, the total amount owed with respect to all orders transmitted by
one bank shall be set off against the total amount owed with respect to all
orders transmitted by the other bank.  To the extent of the setoff, each bank
has made payment to the other.



(d)  In a case not covered by subsection (a),
the time when payment of the sender's obligation under section 490:4A-402(b) or
490:4A-402(c) occurs is governed by applicable principles of law that determine
when an obligation is satisfied. [L 1991, c 41, pt of §1]